SINGAPORE GREEN MARK CERTIFIED RETAIL MALLS: AWARENESS, KNOWLEDGE, PREFERENCES & WILLINGNESS TO PAY

Abstract

In tandem with the heightened global interest on environment issues, the development of green buildings to reduce carbon footprint, improve social benefits, and enhance financial benefits has received widespread attention among all stakeholders. Likewise, urban landscape of Singapore has seen an increasing number of green buildings, including green retail malls, which are guided by the Building and Construction Authority (BCA) Green Mark Scheme. Though real estate professionals are familiar with such government initiatives, there seems to be a lack of awareness among the general public at large. This research therefore aims to examine the level of awareness, knowledge, preferences and perceived value about green features among the general public, including shoppers and tenants. The issues discussed in this research include tenants’ willingness to pay rental premium (WTP) and willingness to accept rental discount (WTA) for stores located in green retail malls. Primary data from face-to-face interviews and field surveys indicates a relatively low level of awareness and insufficient knowledge among the general public about green features. Shoppers are generally indifferent when deciding whether to patronize a green or nongreen retail mall. On the other hand, tenants would generally take the BCA Green Mark Certification into consideration when choosing a location for their retail stores. However, there are many other factors, such as proximity to public transportation, deemed by tenants to be more important than Green Mark Certification. There are more tenants who are willing to pay a rental premium than those who expect a rental discount for stores located in a green retail mall. There are also tenants who hold the view that rentals in a green retail mall should be at parity with those in a non-green retail mall. We observe, on average, a WTP of 1.56% and a WTA of 3.81%.